A strong rally in the domestic equity markets and a weak American currency in the overseas markets also supported the rupee sentiment.

At the interbank forex market, the local unit opened strong at 74.17 against the greenback, then gained strength and settled for the day at 73.69, higher by 53 paise over its previous close of 74.22.

Moreover, a strong dollar in the overseas markets and rising crude prices weighed on the investor sentiment, forex traders said.

At the interbank foreign exchange market, the domestic currency opened marginally down at 74.20 and later dropped to a low of 74.30 in the day trade.

At the interbank foreign exchange, the rupee opened at 74.23 against the dollar, then fell further to 74.27, registering a fall of 3 paise over its previous close amid muted domestic equities.

At the interbank foreign exchange, the rupee opened at 74.43 against the dollar, then inched 4 paise higher to 74.39.

At the interbank foreign exchange, the rupee opened on a weak note at 74.40 against the dollar, then fell further to 74.46, registering a fall of 20 paise over its previous close.

At the interbank forex market, the rupee opened at 74.16 and hit an intra-day high of 74.08 and a low of 74.24. It finally closed at 74.19, higher by 9 paise over its last close.

The rupee moved in a narrow range ahead of the Reserve Bank of India's (RBI) policy decision and the US non-farm payrolls data, forex dealers said.

Forex traders said the rupee is trading in a narrow range as investors are awaiting the RBI’s monetary policy meeting outcome for further cues.